Liner Shipping Report - Alphaliner

Shipbrokers
Since 1856
Liner Shipping Report
October 2003
CUBAN SHIPPING
- BRS-Alphaliner report – 20 Oct 2003
Report dated 20 October 2003
The following reports outlines some key activities related to companies controlled by Cuba. Fleet
details, profiles of services ensured and recent news are available on www.alphaliner.com under the
relevant sections.
This report is provided as part of the data enclosed in the BRS-Alphaliner website and it can be
consulted in full in the relevant sections of the said website. It is then subject to the same General
terms and conditions / Copyrights – which can be consulted in our offices or at
www.alphaliner.com/brs-alpha/disclaimer.htm
Parts of the present report can be reproduced provided that the source is mentioned.
Background / Cuba shipping -
Background / Coral Container Lines -
2003 : Melfi takes in charge the Med-Canada-Cuba service
The AESA-Castellana ships -
The 'Nordsino' class ships -
Background / Cuba shipping -
The dissolution of the USSR in 1990 left Cuba in a difficult position as the USSR was its main trading
partner and the main backer of its merchant fleet. Cuba's merchant shipping had then to find new
ways to survive and to continue to serve the island trade despite the US embargo. Cuba's deep sea
line, Empresa de Navegacion Mambisa, and the chartering unit Empresa Cubana de Fletes (Cuflet -
the role of which was to charter ships from various foreign owners to fulfil the needs of the Cuba trade)
were eventually transferred from the Ministry of Transport to the Ministry of Fisheries, within a division
called Pesport, which controlled already other, smaller companies such as Naviera Poseidon, or
Friomar. In 1995, the government restructured the sector. The Ministry of Fisheries kept only the
fishing-related activities while the shipping activities went under the umbrella of a new body : Antares.
At the same time, a new liner division emerged : Coral Container Lines, which took in charge the
former Mambisa services.
Background / Coral Container Lines -
Coral Container Lines was set up in 1995 as the liner division of Cuban-owned new merchant
shipping body, Antares. Coral took in charge the former Mambisa services (or at least some of them).
It continued the former Mambisa service between North Europe and Cuba with two 24,000 tdw / 863
teu ships (Wismar-OBC type) bought from the Oetker Group (CARIBBEAN QUEEN and CARIBBEAN
PRINCESS), then with Cuba-owned 'Dnepr' class cargo ships (13,500 tdw / 450 teu).
Page 1

Liner Shipping Report
Coral Container Line - October 2003
The line was however downgraded in 1998 and 1999 (to end with spot sailings, in co-operation with
Friomar), and was actually taken in charge by a company controlled by Cuba based in the
Netherlands, Melbridge Container Line (itself founded in 1994).
Melbridge C.L. uses to operate two or three chartered ships of around 1,000 teu on this service, which
links Rotterdam, Le Havre and Bilbao to Canada (St John) and Cuba (Havana) with further oncarriage
to Mexico.
As for Coral, it set up domestic services allowing to link Cuba to neighbouring hubs, partly in cooperation
with foreign partners (such as CGM which was involved as soon as 1995). Coral launched
soon a service linking Italy, Spain and Cuba (Spain is an historic partner of Cuba), and calling also at
the Caribbean hub of Kingston in order to attract third party business (6105).
The service was ensured with the three 'Nordsino' class ships (see related item). As the service grew
up in size, Coral started to charter 900 to 1,100 teu units to replace them, and also to increase the
frequency. This chartering policy started in early 2000, with ships chartered for six months periods.
Thus in 2001, the service was ensured with four chartered ships averaging 1,100 teu (LAURITA
RICKMERS, JADE TRADER, ESTECLIPPER, ELBSTRÖM). Coral even attracted Hapag-Lloyd as a
slot buyer (HL used the service as a Med-Caribbean service, transhipping cargo at its Kingston hub
but was not involved in the Cuba trade).
In 2002, the service was progressively downgraded, probably because of intensified pressure on the
Med-Caribbean trade (via Kingston), and on the Med-Cuba trade itself, especially with the rise of a
rival services launched by Costa Container Lines (6185 / 6186 / 6266), as Cuba started slowly to
open its foreign trade. Another blow was that Hapag-Lloyd did not renew its slot buying agreement.
The chartered ships were progressively returned to their owners as their charter expired, the last one,
the 1,107 teu ELBSTRÖM having been returned in September 2002. Coral went on however, with inhouse
tonnage, such as the 896 teu SEAGREEN and SUNGREEN or even the 844 teu RITA, diverted
from the Coral Cuba feeder service. In August and September 2002, it also chartered 500 teu ships on
a short term basis (round voyages) in order to fulfil its commitments (such as the 417 teu ATLANTIK
and the 574 teu CLAUDIA A.). In the end, Coral bought slots from third pary operators, including the
Costa C.L. service.
Coral had also set up a three ship loop within the Caribbeans, acting as a feeder loop hubbing at
Kingston (run initially with 400 teu mp tonnage -including Dnepr ships-, replaced in September 2000
by the three 844 teu 'Nordsino' type ships since September 2000 - transferred from the Med-Cuba
line), and a weekly Jamaica (Kingston)-Havana shuttle run with the 320 teu NUEVITAS. These feeder
services have been closed in September 2002 and the four ships have been returned to their owners.
2003 : Melfi takes in charge the Med-Canada-Cuba service -
Melfi Marine Corporation is a Cuban-owned company registered in Panama, founded in 1981. It is
currently 'owned' by the CIMEX Enterprise Group (CIMEX = Comercio Interior - Mercado Exterior), a
private commercial organization belonging to the Cuban government. Besides shipping, CIMEX is
active in real estate, legal matters, wholesale and retail services.
Melfi Marine Corporation operates under the brand name 'Melfi Lines'. It has been operating a service
between Canada (Halifax) and Cuba (6206), using multipurpose tonnage. Nickel byproducts are
believed to form the main cargo on this service. It operates also a regional service linking Havana to
Mexico, Panama and the NCSA (6876), acting also as a relay service used by Melbridge Container
Line, a Netherlands-based company controlled by Cuban interests.
Page 2

Liner Shipping Report
Coral Container Line - October 2003
In September 2003, Melfi Lines launched a service linking the Med to Canada and Cuba (6188), which
took the cargoes formerly carried by the Med-Cuba service operated by Coral Container Lines until
September 2002. When this latter service was closed, the freight carried was shifted to the relevant
service of Italian operator Costa Container Lines (6186).
Melfi has chartered three ships to ensure it : the 749 teu CONTAINERSHIPS IV (alias SPICA), the
1,102 teu ALASSA and the 878 teu SAYINUR YARDIMCI. The CONTAINERSHIPS IV and ALASSA,
renamed MELFI ITALIA and MELFI HABANA.
ANNEX on key ships
The AESA-Castellana ships -
In the early 1980s, it was decided to modernise the fleet of state-owned Empresa de Navegacion
Mambisa (then including SD 14s and Dnepr class ships). An arrangement was found to have new
cargo ships ordered in Spain (Astilleros Españoles - AESA). Although details of the financing remain
unknown, the ships were actually ordered by Castellana, a Spanish firm linked to AESA, which has
sublet the ships for a long period to Cuba under a bare-boat charter agreement. Thus, in 1985-86,
Mambisa received from AESA a series of eight multipurpose cargo ships of 16,200 tdw and 519 teu,
starting with the BAHIA DE MANZANILLO (in order to obtain the full list, enter the SHIPS page / click
Class-design : 'Aesa-Castellana'). However, difficulties linked to the loss of the USSR backing did not
allow the Cuba government to fulfil its obligations with AESA-Castellana, and with other creditors as
well, and the ships were recovered by their Spanish owners and put up for sale. All eight ships were
sold in 1996, seven of them having been bought by Bangkok-based Thoresen & Co (and were given
THOR style names) while the remaining one went to South Korea-based Hansung Shipping.
The 'Nordsino' class ships -
As the container invaded the Cuba trade in the 1980s, it became urgent to cover the country
containerised foreign trade with adequate tonnage. The government bought three 844 teu ships from
China, delivered in 1988-89 by the Shanghai Shipyard. These ships were based on a German design,
known as the 'Nordsino' type (of which five were built for German owners in the early 1980s). They
were the first Cuban cellular ships and were delivered to Mambisa as the SIERRA MAESTRA,
ERNESTO CHE GUEVARA and CAMILO CIENFUEGOS and soon renamed (1990) in GIORITA,
ENERGY and ALBONICA. In turn the two latter ones became GROSSERMAN and GUTTERMAN in
1995.
In 2000, the three ships were sold to Greek owner Lagoa Shipping Corp., and the their management
was entitled to London-based Millemium Shipping. They were renamed AMALIA, ANA and RITA. They
stayed however operated by Coral under a charter back arrangement, which came to an end in
September 2002. As for the buyer, Lagoa Shipping, it was already involved with Coral C.L. as the
owners of the Coral-chartered 320 teu NUEVITAS, a former ship delivered in the name of the Baltic
Shg Co and sold by its Russian successors to Lagoa in 1997, and also as buyers -in 1997- of the two
24,000 tdw / 863 teu conbulkers CARIBBEAN QUEEN and CARIBBEAN PRINCESS, earlier reported
as bought by Cuba from the Oetker Group.
Page 3